1. No category


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Appendix A: Benefit-Cost Analysis: Kalispell/FCEDA Rail Park
Summary and Findings
This TIGER VI grant application is for Phase II construction of the rural Kalispell/Flathead County
Economic Development Authority (FCEDA) Rail Park (hereafter referred to as Kalispell/FCEDA Rail
Park or Rail Park). Requested funds will complete a new industrial rail park serving northwest Montana
and all ports served by BNSF Railway on the West Coast, Great Lakes Region, and Canada. Primary
port connections include the Ports of Seattle, Tacoma, and Vancouver in Washington; Portland, Oregon;
Minneapolis, Minnesota; North Dakota and Lethbridge/Raymond in Alberta, Canada.
This project will be 100 percent ready to start construction in August 2015. This project is ready to go.
The NEPA environmental process categorical exclusion checklist has been completed; thirty relevant
agency responses indicate no negative impacts as a result of the project. We have been informed by the
Federal Railroad Administration that upon award of TIGER VI funding the agency would at that time
finalize their NEPA review. Preliminary design was prepared by professional design engineers working
closely with BNSF Railway, Watco/Mission Mountain Rail, and our first expected tenant, Cenex Harvest
States (CHS) and has received approval of all three entities. The design team foresees no complicating or
project ending factors. The project site is owned by one of the co-applicants. It is flat, locally owned,
with no significant environmental features or complicating features. The southern edge of the site is
buffered by a hillside.
The Kalispell/FCEDA Rail Park project has met all local requirements for approvals and permits. State
and federal requirements will be met by October 2014, so that if funded by TIGER VI it would allow
USDOT to obligate funding well in advance of September 30, 2016. Project risks have been identified
and mitigation strategies incorporated. The project schedule illustrates that all contract bid documents
will be finalized with the project ready for bid by June 2015.
With TIGER VI funding, the project could be completed and open by January 2017.
This benefit-cost analysis (BCA) follows guidance set forth in the notice of funding availability for
TIGER VI grants Docket No. DOT-OST-2014-XXXX Notice of Funding Availability for the Department
of Transportation’s National Infrastructure Investments under the Consolidated Appropriations Act,
2014.
An analysis completed by project engineers indicates the total cost for this phase of the project is $23.8
million in 2014 dollars. This funding request is for Phase II construction.
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

Page |2
Table 1: Total Project Budget
Kalispell/FCEDA Rail Park Project Phase II
Project Budget Phase II
in Millions
CN
$22.1
FE/ CN Engineering
$1.2
$0.7
Management and Inspection
$24.0
Total Cost
92%
5%
3%
100%
Table 2: Funding Sources
Funding Sources
BNSF
Kalispell
FCEDA
TIGER VI Request
Total Project Funding for Phase II
Total Federal
Total Local
Total Project Funding for Phase II
$
$
$
$
$
Kalispell/FCEDA Rail Park Project Phase II
Amount
Status
in Millions
0.5
Committed
4.1
Committed
9.6
Committed
9.9
Requested
24.00
Total Project Cost
$9.9
41%
$14.1
59%
$24.0
100%
Purpose
Construction
Construction
There is a 59 percent or $14.1 million in local match committed for this $24 million Phase II.
The City and FCEDA are requesting a TIGER VI federal investment of $9.9 million to complete the
project’s Phase II construction.
Project comparison is with most likely alternative, a "no build" scenario
For the purposes of this analysis, the proposed project is compared with a no build alternative.
The analysis included the total project costs to date and upcoming construction (Phases I and II) for a
total project cost of $26.0 million. This includes $558,000 of federal funds that will be used for
environmental assessment and mitigation of the removal of the rail and conversion to a trail through
downtown Kalispell. These costs are included in the cost basis for the BCA but the federal funds to be
used to fund the assessment and mitigation is not shown in the project funding for Phase II as these
funds cannot be count in the match calculations so have been separated. The BCA was run for the
period of 20 years beginning with the base year of 2014 including a residual calculated in 2034 of
combined $20.1 million for remaining estimated life of the Rail Park and Trail at that time. Phase I
costs of $1.4 million are shown in year -1 (2012/2013)
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

Page |3
Table 3: Project Schedule
Kalispell Trail - FCEDA Rail Park Project Schedule
Task
Due Date
Submit Categorical Exclusion Worksheet to the Federal Railroad Administration (FRA)
April 2014
Receive Notice of Award from the United States Department of Transportation (US DOT)
October 2014
FRA Identifies the Anticipated Level of Environmental Review
October 2014
Receive TIGER VI funds from US DOT
January 2015
Submit Water, Sewer, and Storm Water Plans to MTDEQ for Review
February 2015
Submit Rail Design to BNSF for Review
February 2015
Submit Roadway and Signaling Design to MDT
February 2015
Receive MTDEQ Approval for Water, Sewer, and Storm Water Plans
April 2015
Receive BNSF Approval for Rail Design
April 2015
Receive MDT Approval for Roadway and Signaling Design
April 2015
Issue Finding of No Significant Impact (FONSI) from FRA
June 2015
Complete Final Design and Construction Documents for Rail Park
June 2015
Rail Park Construction Contract Signed and All TIGER Funds Obligated
August 2015
Begin Construction of Rail Park
August 2015
Complete Construction of Rail Park
December 2016
Complete CHS Facility Construction and Relocate Existing Rail Users to Rail Park
October 2017
Complete Rail Abandonment
April 2018
Complete Trail Property Acquisition
April 2018
Complete Environmental Site Assessments and Remediation
December 2018
Complete Final Design and Construction Documents for Multi-Use Trail
March 2019
Remove Track, Complete Street Extensions, Upgrade Pedestrian Crossings, and Construct
Multi-Use Trail
April 2019 –
September 2021
Table 4 displays the summary of the BCA. Quantified benefits include the transportation cost savings of
modal conversion to rail, reduced emissions due to reduced truck miles, better fuel efficiency, and
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

Page |4
improved safety due to the reduction of potential accidents due to the reduction of truck vehicle miles
traveled when this project is completed.
Table 4: Project Benefit to Cost Ratio Analysis
Benefit to Cost Ratio Analysis
Selection Criteria
Livability
Economic Competiveness
Economic Competiveness
State of Good Repair
Environmental Sustainability
Safety
Safety
Total Cost
Total Benefits
Net Present Value
Benefit to Cost Ratio
Description
Converting current rail line going through
Downtown to trail
Operational cost savings
Fuel savings due to reduced miles
traveled by cargo using Rail Park vs.
Truck
Reduction of maintenance on US Roads
& Hwys, Consistent with State and
Regional Plans
Environmental Benefits from Reduced
Emissions
Closing of 6 rail crossings Downtown
Kalispell
Reduced fatalities from reduction of VMT
Monetized Value
Discount Rate
Discount Rate
7%
3%
Inputs
Value
not calculated
not calculated
27 million ton miles
@$0.071 savings per mile
(rail vs. truck/ barge )
Savings of rail transport
vs. truck transport
Gallons of fuel saved
$
2.53million gallons of fuel
saved by reducing miles
traveled with modal shift to
Rail
$
Maintenance,
preservation and upgrade 6.8 million VTM reduced off
savings of Highways
the highways
$
CO2 cost savings
14,624 metric tons of CO2
saved
Fatality cost savings of
0.8 fatalities
$7.4 million saved
Fatality cost savings of
0.12 fatalities
$1.1 million saved
843,788 $
1,309,946
23,768,684 $ 36,899,891
362,998 $
563,539
$
468,966 $
468,966
$
3,384,375 $
5,690,014
$
$
392,580 $
660,029
($14,968,256) ($11,116,840)
$29,221,391 $ 45,592,385
14,253,135 $ 34,475,545
2:1
4:1
A discount rate of 3 percent was used, following the TIGER BCA Resource Guide updated 4/4/2014.
Bottom line, the present value (PV) of costs in 2014 dollars is $11.1 million and the PV of benefits is
$45.6 million. This rate yields conservative estimates of NPV and benefit cost ratio, but per the NOFA
guidance, it is appropriate because funds are public and would be spent on other public projects. This
analysis yields a NPV of $34.5 million and a benefit-cost ratio of 4:1. The greatest share of benefits is
Economic Competiveness from fuel cost savings as a result of the modal change from truck/barge to rail.
When a discount rate of 7 percent was used, the PV of costs in 2014 dollars is $15.0 million and the PV
of benefits is $29.2 million. This rate also yields conservative estimates of NPV and benefit cost ratio
per the NOFA guidance. This analysis yields a NPV of $14.3 million generating a benefit-cost ratio of
2:1 over the 20 year analysis. The greatest share of benefits is again from the Economic Competiveness
Category from the fuel cost savings by moving the cargo on rail vs. truck/ barge as is currently done.
The proposed improvements will open a Rail Park in Kalispell, MT enabling the local shippers to move
their cargo by rail versus truck. This will save each of the example company millions of dollars per year
in transportation costs due to the ability to more efficient route the cargo as well as the cost per ton
differential of rail versus truck.
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

Page |5
The use of rail service instead of the current route of trucking grain to Lewiston, ID where it is put on a
barge to Portland, OR will elimination at least 3 million commercial truck miles off of the local roads and
highways. This reduction in commercial vehicle miles will reduce the probability of 0.12 fatality
accidents from occurring on the related roads and highways. This results in a monetized safety value of
$0.7 million at a 3 percent discount rate and $0.4 million when a 7 percent discount rate is used.
Phase II Project Completion
Federal grant funds received from the TIGER VI request will enable the applicants to complete the new
industrial rail park. Due to limited funding options, the project will otherwise be delayed if these funds
are not awarded under TIGER VI until the final funding becomes available in another federal funding
source. With the successful award of this TIGER VI grant, construction for Phase II can begin fall 2015
and the rail park could be completed and opened by January 2017. .
Baseline Assumptions
Estimation of costs and benefits are limited to the 2014 to 2034 period. The analysis incorporates
assumptions based upon one grain shipper that is committed to move into the Rail Park and use the rail
service once it opens in 2017. This shipper is CHS, who has committed to relocate from its current
facility downtown Kalispell to the new Rail Park in Fall 2017. To assure that the BCA presents a
conservative estimate of the benefits, the BCA assume the first shipments from the Rail Park will occur
in January 2018. The movements related to this example are based upon conversion of 50% of their
grain that currently is routed in a truck /barge movement to primarily a rail only movement. To be
conservative the volumes were held constant at 2013 levels until after the Rail Park open, then the
tonnage is projected to grow at a conservative 3% per year. These assumptions are detailed below.
Estimated loads were developed based upon the conversion of 50% of the current 30,000 tons
annual grain movement. There were 1161 total truck loads in 2013 from the current production at
CHS facility in Kalispell to Lewiston, ID where the grain was loaded on to a barge to be delivered
down river to an export grain terminal in Portland, OR.
Current Situation
The current movement of the grain requires a 312 mile dray to Lewiston, ID. There it is loaded on to a
barge for transport 465 miles downriver to an export grain terminal at the Port of Portland. This is a 624
mile round trip for the trucks. It must be noted that the trucks return empty back to their origin in the
Flathead region. It also includes a round trip grain barge movement of 930 miles.
Future Situation
Upon completion of Phase II, the new routing would be by truck from the local farm to a grain silo at the
Rail Park in Kalispell. This trip is estimated to be an average of 26 miles each way, followed by a 646
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

Page |6
mile rail move to the Port of Portland’s export grain terminal. This conversion is estimated to eliminate
over 2.4 million ton miles in the first year of operation.
Affected Populations and Types of Impacts
The benefiting populations include three main groups: personal vehicle users, commercial carriers, and
local residents that will now have access to a new employment center as well as improved connectivity
by non- motorized means such as bicycle/pedestrian. The following tables attempt to present costs and
benefits for each type of impact that could be monetized. Quantified benefits include:






Improved economic competitiveness based upon the reduction of transportation costs for the
Flathead Valley grain producers
Reduction of gallons of fuel used to transport the grain.
Improved state of repair of the roads and highways, due to the reduction of truck miles
Reduced emissions due to lower Vehicle miles traveled by the commercial truck
Improved safety, resulting in reduced economic costs of potential fatalities on the highway due to
the reduced VMT of the trucks as well as the reduced economic cost of potential fatalities
prevented with the closure of the six downtown rail crossings.
Costs include construction and lifecycle costs. Construction costs are best available estimates at
the 90% design level as of April 2014. This analysis anticipates general operations and
maintenance costs.
Unquantified benefits include:




Downtown benefits from reduced truck congestion
Benefits to the local community to increase job opportunities at the Rail Park and the improved
availability of transportation choices for area residence for their daily activities such as work,
education and other services.
The increase in land value as the rail in downtown is converted to a trail.
Benefits to the area citizen of the increased connectivity across town for non- motorized modes of
transportation that will provide access to work centers, educational sites, and daily services.
Quantified Costs and Benefits: Long-Term Outcomes
The largest positive benefits at 7 percent discount rate are from the economic competiveness
improvement based upon the reduction of highway miles which generates an annual fuel savings of
approximately $2 million due to the energy efficiency of rail versus trucks. This benefit alone accounts
for 81 percent of the total benefits. The lower ton/mile transportation costs savings generates an
additional 3 percent. Total Safety benefits account for 14 percent of the benefits. Reduced emissions and
saving in road maintenance from the improvements account for the remainder.
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

Page |7
Project Costs
A project cost analysis completed by project engineers indicates the cost to complete this phase of the
project is $ million in 2014 dollars. The percent non-TIGER V investment of $8.8 million (50%) is
comprised of committed funds primarily from the FCEDA.
Benefits
Quality of Life
This project provides wonderful benefits to the local residents through increased access to the new
employment center at the Rail Park as well as the benefits they will receive from the reduction of the
grain trucks being removed from the downtown corridor. The completion of the project will allow the
addition of paths that will connect the east and
west sides of Kalispell for non-motorized travel.
The project will improve the quality of life in
Kalispell and along the I-90 Corridor, as it
supports the core livability principles established
by the Partnership for Sustainable Communities
that are being used by the federal agencies as
guidance for project selection. The project’s
purpose is to provide a safer transportation of freight from the City of Kalispell to their respective
markets.
Quality of life benefits have not been monetized in the BCA due to the difficulty to fully articulate and
model these community benefits. See more detail on this criteria under the section below on Qualitative
Benefits not Quantified
Economic Competitiveness Benefits
The Economic Competitiveness Benefits of the project have been monetized in two ways:


Decreased operational costs based upon rail transportation being more cost effective than trucking
Fuel savings based upon the energy efficiency of rail over truck
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

Page |8
Decrease in Operational Transportation
Table 5: Decrease Operational transportation costs due to the completion of the rail park and the initiation
of rail service from that location:
Decreased Operational Costs due to construction of
Phase II and coversion to rail in Kalispell, MT
Reduction in
Total ton
operation cost
miles on rail
saving /
Year
based upon
after opening
mile
differential rate/
of rail park
mile rail vs truck
RT
Portland, OR $
0.071
2013
0.071
2014
0.071
2015
0.071
2016
0.071
2017
0.071 $
2018
2,443,009
0.071 $
86,727
2019
2,516,299
0.071 $
89,329
2020
2,591,788
0.071 $
92,008
2021
2,669,542
0.071 $
94,769
2022
2,749,628
0.071 $
97,612
2023
2,832,117
0.071 $
100,540
2024
2,917,080
0.071 $
103,556
2025
3,004,593
0.071 $
106,663
2026
3,094,731
0.071 $
109,863
2027
3,187,573
0.071 $
113,159
2028
3,283,200
0.071 $
116,554
2029
3,381,696
0.071 $
120,050
2030
3,483,147
0.071 $
123,652
2031
3,587,641
0.071 $
127,361
2032
3,695,270
0.071 $
131,182
2033
3,806,128
0.071 $
135,118
2034
3,920,312
0.071 $
139,171
53,163,753
$
1,887,313
This chart shows the estimated operational cost saving based upon the differential cost of $0.071 per ton
savings which will total almost $2 million over the analysis period. This is anticipated to be achieved by
the grain shipper when the grain is moved from the Rail Park by rail to Port of Portland versus the current
route by truck and barge to the same destination.
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

Page |9
Fuel savings due to the use of the more energy effective rail mode to transport the cargo to
Portland, OR:
Fuel savings are anticipated as the cargo is moved directly to Port of Portland by rail versus the current
multi-modal method. Table 5 below shows the estimated number of gallons of fuel saved by converting
the current transportation method to rail. The construction of the Rail Park will reduce fuel usage by over
2.3 million gallons of fuel during the 20-year period, which will save shipper over $9.2 million at today’s
average fuel prices of $4.00/ gallon as of March 10, 2014.
Table 6: Gallons of Fuel and CO2 Saved
Gallons and CO2 MT Saved due to shift in mode
Total gallons
save by
Year
reduction in
Fuel savings due CO2 Reduced
modal shift
to reduced idling (Metric Tons)
@$4.00 / gal
2014
$0
(1,511)
2015
$0
(1,468)
2016
$0
(1,468)
2017
$0
(1,468)
2018
141,203
$564,811
1,261
2019
140,572
$562,287
1,255
2020
139,922
$559,687
1,249
2021
139,252
$557,009
1,243
2022
138,563
$554,250
1,237
2023
137,852
$551,409
1,231
2024
137,121
$548,482
1,224
2025
136,367
$545,468
1,218
2026
135,591
$542,363
1,211
2027
134,791
$539,165
1,203
2028
133,968
$535,871
1,196
2029
133,120
$532,479
1,189
2030
132,246
$528,984
1,181
2031
131,346
$525,385
1,173
2032
130,419
$521,678
1,164
2033
129,465
$517,859
1,156
2034
128,482
$513,926
1,147
Total
2,300,278 $
9,201,113
14,624
Environmental Sustainability Benefits
The project is also expected to save 14,624 Metric Tons of greenhouse gas emissions over 20 years. The
analysis showed reduced emissions in CO2 due to the reduction of fuel usage of rail transportation vs.
trucking.
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

P a g e | 10
State of Good Repair of the local Highways
Table 7: Decrease in Road Maintenance
Decreased road maintenance due to construction of Phase II and conversion to rail
Decrease in
No Build
Maintenance
Truck Miles Maintenance
No Build
Total
Year
Total savings
Costs with full
saved
rate/ mile
Total Miles Maintenance
conversation to
Cost
rail
$
0.12
2013
$
0.12
724,464 $
86,936 $
2014
$
0.12
724,464 $
86,936 $
2015
$
0.12
724,464 $
86,936 $
2016
$
0.12
724,464 $
86,936 $
2017
$
0.12
0
724,464 $
86,936 $
2018
310,916 $
0.12
37,310
746,198 $
89,544 $
37,310
2019
320,243 $
0.12
38,429
768,584 $
92,230 $
38,429
2020
329,851 $
0.12
39,582
791,641 $
94,997 $
39,582
2021
339,746 $
0.12
40,770
815,391 $
97,847 $
40,770
2022
349,938 $
0.12
41,993
839,852 $ 100,782 $
41,993
2023
360,437 $
0.12
43,252
865,048 $ 103,806 $
43,252
2024
371,250 $
0.12
44,550
890,999 $ 106,920 $
44,550
2025
382,387 $
0.12
45,886
917,729 $ 110,128 $
45,886
2026
393,859 $
0.12
47,263
945,261 $ 113,431 $
47,263
2027
405,675 $
0.12
48,681
973,619 $ 116,834 $
48,681
2028
417,845 $
0.12
50,141
1,002,828 $ 120,339 $
50,141
2029
430,380 $
0.12
51,646
1,032,912 $ 123,949 $
51,646
2030
443,292 $
0.12
53,195
1,063,900 $ 127,668 $
53,195
2031
456,590 $
0.12
54,791
1,095,817 $ 131,498 $
54,791
2032
470,288 $
0.12
56,435
1,128,691 $ 135,443 $
56,435
2033
484,397 $
0.12
58,128
1,162,552 $ 139,506 $
58,128
2034
498,929 $
0.12
59,871
1,197,429 $ 143,691 $
59,871
6,766,021
811,923
$
811,923
It is anticipated that there will be almost 7 million truck miles saved with the opening of the Rail Park
just with 50% of the current grain converting to rail to Portland, OR. This is a total savings in road
maintenance of $812,000 over the time-period of this analysis.
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

P a g e | 11
Safety benefits
Table 8: Conversion of Collision Statistics
Conversion of Collision statistics based upon 100 Million miles travel by truck
Current est.
Effect on Accidents
Collision Type
accident costs with conversion to rail
Current
Annual social
Fraction of Unit value
Conversation of
cost of
Estimated Annual
AIS Level
Severity
VSL
($2014)*
Montana Traffic
Accidents
accident costs savings
AIS 0
no injury
$0
AIS 1
Minor
0.003
$27,600
$0
$0
AIS 2
Moderate
0.047
$432,400
$0
$0
AIS 3
Serious
0.105
$966,000
$0
$0
AIS 4
Severe
0.266
$2,447,200
$0
$0
AIS 5
Critical
0.593
$5,455,600
$0
$0
AIS 6 reduction VMT
Unsurvivable
1.000
$9,200,000
0.007138
$65,671
$65,671
AIS 6 due to crossing closure Unsurvivable
1.000
$9,200,000
0.061537
$566,140
$566,140
Property Damage Only
$3,285
$0
$0
$631,811
$631,811
*TIGER BENEFIT-COST ANALYSIS (BCA) RESOURCE GUIDE updated 3/28/2014
Conversion of Collision statistics based upon 100 Million miles travel by truck
Montana Traffic Fatalities Per 100 Million miles traveled on Roads
2.11
Total Truck miles reduced over the 20 years
6,766,021 /20
Total Truck miles divided by 100 million miles
0.067660215
Estimated Fatalities Per 100 miles travel based upon Montana's experience
0.142763053
2013 Unsurvivable value
$9,200,000
Annual life savings based upon reduced truck mileage
Annual
338,301
0.003383011
0.007138153
$65,671.00
Total lives saved over 20 years
Dollars saved
0.12
$1,116,407
Safety benefits are estimated at $1.1 million in total social benefit of 0.12 lives being saved over the 20
years based upon the reduction of fatalities due to the reduction of truck miles between Kalispell and
Lewiston.
Table 9: Predictive accidents on Rail crossings
RAILROAD CROSSING SAFETY
Crossing
059375E
059374X
059373R
099099N
059372J
059371C
MP
1226.70
1226.30
1226.10
1225.93
1225.79
1225.70
Rank within
County with
Road
City
33 crossings
Meridian Rd
Kalispell
22
5th Ave NW
Kalispell
21
Main St ((US 93)
Kalispell
4
1st Ave E (US723)
Kalispell
33
3rd Ave NE
Kalispell
23
4th Ave NE
Kalispell
24
Six crossings have an annual predictive collision rate of0.061537
Total Predictive Collisions
per year
0.0615 13 yrs
Train Speed
10 mph
10 mph
5 mph
10 mph
10 mph
10 mph
$
# Tracks AADT
Lanes
1 Main
11790
1 Main
5061
1 Main
26070
2 Main
2859
1 Main + 1 Ind 3156
1 Main
4198
2
4
7
4
4
2
0.80
7,359,825
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

P a g e | 12
The closing of the six at-grade crossings will save approximately 0.8 lives over the 20 years of this
analysis saving the public social benefits of $7.4 million in reduced fatalities.
Qualitative Benefits not Quantified.
The project does not permit economic quantification of some factors. Unquantified factors include
general vitality of downtown Kalispell due to improved accessibility and attractiveness to consumers and
investors with the truck and rail traffic moving out of downtown to the Rail Park. The main benefits not
quantified are summarized below. These factors are expected to be positive benefits to the community.
The project team did not try to monetize the benefits of the closings of the six at-grade crossing accept
for an estimate of accidents that will be prevented when the current rail through downtown Kalispell is
converted to rail as those closing will be part of Phase II of the project. It is believed that there will be
additional savings to the community that cannot easily be monetized. Examples of these non -quantified
Benefits that could be monetized under economic competitiveness and Environmental Sustainability
categories but have not been in this analysis include:

Travel time savings to the school district due to the reduction of school bus crossing of the
railroad in the downtown area. It is currently estimated that there are almost 2100 Head Start preschool bus crossing of the six at-grade downtown crossings. These are in addition to the 42,900
annual bus crossings by the School District 5 and Eagle.

Travel time savings to local citizens due to reduction of six at-grade crossing in downtown
Kalispell.

Decreased emission due the reduction of idling time at these removed crossings
Quality of Life: A benefit not quantified in this calculation of the BCA from this improvement is the
enhanced livability of downtown Kalispell, which is expected to benefit the area and its many users. The
project’s primary livability goal is to foster a livable community through the application of existing
policies and new investments to increase transportation choices and improve access to transportation
services. The livability investments included in this project will deliver transportation benefits and are
designed and planned in such a way that they will have a positive impact on the qualitative measures of
community life.
The project will generally enhance the community’s economic competitiveness by improving
accessibility and transportation service for economically disadvantaged populations, non-drivers, senior
citizens, active citizen that like to travel by non- motorized modes to work and school, and persons with
disabilities that may now be able to use the proposed path to get to services such as stores and doctors.
The improved access to downtown and the Rail Park will provide reliable and safe access to this new
employment center. The improved connectivity that the path will bring for the community will provide
transportation choices to access job opportunities, educational, services to meeting other basic needs of
community members.
The project will also support the existing community through land renewal and redevelopment to
increase community revitalization and improve the efficiency of public works investments. The
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

P a g e | 13
proposed transportation improvements will support infill, mixed-use development, rehabilitation, and
redevelopment of the downtown area to further reduce the need for automobiles, encourage walking /
biking, and save energy.
The project may also stimulate new opportunities to rehabilitate or redevelop existing structures to
accommodate a higher density or intensity of use. Redevelopment often occurs where a property location
can support more intense development, such as areas where street improvements can accommodate
increased traffic flow.

Increase in Downtown Property Values: Additionally, the project adds value to communities
and neighborhoods. It will enhance the unique characteristics of the downtown community and
adjacent neighborhoods by investing in healthy, safe, and walkable transportation infrastructure.
Studies have shown an eight to twelve percent increase in residential and commercial values
where alternative transportation means—such as bike lanes and sidewalks—are located within ½
mile compared to areas without these amenities. And an improved level of service may create
new opportunities for businesses to locate, expand or build in this area, adding further value to
downtown Kalispell and adjacent neighborhoods.

Noise mitigation: The project also includes landscaping and other noise mitigation features
allowed by the closure of the at-grade rail crossings in the downtown area. This will positively
affect nearby neighborhoods and businesses by reducing potential health costs and improving
property values. These external costs and benefits are not quantified in the BCA.
Job Creation
Table 10: Construction Jobs Created by the Total Project
Year
Quarter
2014 Q1
Q2
Q3
Q4
2015 Q1
Q2
Q3
Q4
2016 Q1
Q2
Q3
Q4
2017 Q1
Q2
Q3
Q4
2018 Q1
Q2
Q3
Q4
2019 Q1
Q2
Q3
Q4
2020 Q1
Q2
Q3
Q4
2021 Q1
Q2
Q3
Q4
Total Job Years
# Jobs
3
3
3
3
115
173
188
188
188
188
16
16
16
16
16
16
16
16
16
16
16
16
16
Short-Term Impacts on Employment: Job creation impacts from the total project
are estimated in Table 10. The construction of this $24.2 million project will generate
316 short-term family wage jobs at $76,900 per job year in the seven years spanning
2014 to 2021. This includes investment that covers the final design, final approvals,
and construction period of both the rail park and the trail. Positive economic impacts
resulting from these jobs are not included in the benefit-cost ratio.
The project team used the administration’s jobs formula to calculate short-term
employment impacts of Phase II. It is estimated that the construction of the Rail Park
will generate 260 job years of 2015 to 2016. An estimated additional 53 job years
will be generated for the construction of the trail from 2018 to 2021.
Other private investment generated by the Rail Park development will include an
estimated $18 million in capital improvement in the Rail Park as well as $7 million
investment in the downtown area. This construction will generate an additional 325
short term jobs.
316
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana

P a g e | 14
Long-Term Job Creation: In addition to the short-term construction jobs, it is anticipated that the Rail
Park at full build out will generate 11.75 1jobs per acre on the 32.4 acres of transload facilities located on
site. This calculates to more than 380 long-term direct, indirect and induced jobs related to the
completion of this project. The annual economic impact is estimated to exceed $16.6 million in wages
and benefits for the local community.
Table 11: Summary of Job Creation
Summary
Short-term Construction jobs
Development of Rail Park and Trail
Addition private investment enabled by project
Long- Term Direct, Indirect and Induced
At the Rail Park
Job years
Investment
316
$24.2
325
$25.0
Annual
Economic Contribution
Jobs
381
$16,628,976
Sources
All sources and additional notes have been cited in the Benefit Cost Analysis excel workbook that can be
found at the project website:
http://www.kalispell.com/community_economic_development/TIGERGrantApplication.php
1
http://cdn.laedc.org/wp-content/uploads/2012/04/CalCartage_REVISED_November9.pdf
Kalispell/FCEDA Rail Park
TIGER VI GRANT APPLICATION
For City of Kalispell, Montana